Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens knsgccxr and Coje_He for the clue delivery! CTOnews.com, Oct. 19 (Xinhua)-- Nokia said today that it is taking cost-cutting measures to cut 14000 jobs, or 16 percent of its workforce, due to underinvestment in fifth-generation mobile infrastructure, according to Bloomberg.

The move is expected to save as much as 400m euros next year (CTOnews.com Note: currently about 3.088 billion yuan) and 300m euros (currently about 2.316 billion yuan) in 2025.

Pekka Lundmark, chief executive of Nokia, said: "in the 5G communications business, network facility operators will face a series of challenges, which are 'bound to happen'."

Pekka Lundmark also claimed that Nokia's growth in India "can no longer fully make up for what Nokia lost in the North American market, but" there will always be a recovery after a fall. "We don't know the exact timing, which is why we took layoffs."

Bloomberg said Pekka Lundmark did not say which departments would be affected by the layoffs, but said Nokia would still "protect the R & D department."

Nokia's rival Ericsson AB also released a "disappointing outlook" this week, saying that the communications market would remain weak beyond the fourth quarter of this year.

Andrew Gardiner, an analyst at Citi, said in a report that Nokia "fell short of expectations in terms of sales and profits, and although we expect a similar situation for competitors such as Ericsson, we think Nokia is a little bit less than expected."

Nokia kept its full-year sales forecast at 23.2 billion euros to 24.6 billion euros (currently about 179.104 billion yuan to 189.912 billion yuan), and Nokia's share price has fallen 1.3% to 3.22 euros (currently about 25 yuan).

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